How GARP calculates passing score?

[zript]

Hi,

I saw in GARP website that the passing score is the ratio of the absoute to the top 5% quantile average results

What do they mean by absolute score? is it the sum of everyone scores (just the one that wrote the exam not, i.e not including the person that didn't come)

for example there were 9000 candidates that participated or took the exam, absolute score is candidate 1 + candidate 2 + ... + candidate 9000. Suppose the average score for the 9000 candidates is 50, the absolute score is 50 * 9000 = 450000

am I right?

Let say the average score for the top 5% quantile is 75 the average result is 75 * 450 = 33750

Finally the score (20 basis) should be 450000/33750 = 13,33 (maximum is 20) and then passing score (100 basis) is 14,66*5 = 66,66

Is my last calcul correct?

Thanks,

 

[braxxus]

Not sure on the exact calculation, but I guess they say something like if the top 5% scores on average 90%, they might take everyone with 70% of that score or greater, so the cutoff would be a score of 63 in this case. I am just guessing how it works and i have no idea how far away from the top 5% you can be to pass.

 

[zript]

Hi Braxxus

Thanks for your answer. Now it seems more clear to me

By the way, I want to have your personal opinion on the top 5 quantile. Do you think 90 could be a realistic average for this part of quantile?

I would say 80-85 myself.

Cheers,

 

[braxxus]

I think 80 would be too low for the top 5% personally. I figure around 90% is probably right, maybe as low as 85%. You always have some people who do very well. In school I was one of those guys ruining the curve, but no chance of that here. I figure I got around 60-65 questions right.

 

[zript]

Then If the shortcut is 70% you are in

Myself I think that I have 55-60 right answer

Hope the shortcut will be 65 then (maybe too low shortcut to apply for GARP)

 

[turtle2]

I think May 2010 L1 was equally tough and if you scored ( my guess only ) 80% correct, you would have passed without any worries. I think top 5% might have been 95% at that time. I passed L1 in May 2010.

Turtle2

 

[archlight]

Is there weighting on the questions? i hope they are all equal weighted

 

[zript]

Hi archlight

To me they are all equally weighted but you have more questions in Valuations Models + Financial Markets (60 questions) than for quantitative analysis + Foundations of risk management (40 questions)

Cheers,

zript